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LKQ

Nasdaq:LKQ
Snowflake Description

Mediocre balance sheet with limited growth.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
LKQ
Nasdaq
$11B
Market Cap
  1. Home
  2. US
  3. Retail
Company description

LKQ Corporation, together with its subsidiaries, distributes replacement parts, components, and systems used in the repair and maintenance of vehicles. The last earnings update was 6 days ago. More info.


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  • LKQ has significant price volatility in the past 3 months.
LKQ Share Price and Events
7 Day Returns
-1.6%
NasdaqGS:LKQ
-0.8%
US Retail Distributors
0.8%
US Market
1 Year Returns
29.5%
NasdaqGS:LKQ
16.2%
US Retail Distributors
11%
US Market
LKQ Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
LKQ (LKQ) -1.6% 14.4% 39.1% 29.5% 8.4% 22.5%
US Retail Distributors -0.8% 4.1% 12% 16.2% 21.1% 29%
US Market 0.8% 4.3% 6.1% 11% 40.2% 45%
1 Year Return vs Industry and Market
  • LKQ outperformed the Retail Distributors industry which returned 16.2% over the past year.
  • LKQ outperformed the Market in United States of America which returned 11% over the past year.
Price Volatility
LKQ
Industry
5yr Volatility vs Market

Value

 Is LKQ undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of LKQ to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for LKQ.

NasdaqGS:LKQ Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 15 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9.3%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:LKQ
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Retail Distributors Unlevered Beta Simply Wall St/ S&P Global 0.84
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.839 (1 + (1- 21%) (48.46%))
1.107
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.11
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.107 * 5.96%)
9.33%

Discounted Cash Flow Calculation for NasdaqGS:LKQ using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for LKQ is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

NasdaqGS:LKQ DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 9.33%)
2020 692.25 Analyst x4 633.19
2021 808.33 Analyst x3 676.28
2022 840.50 Analyst x2 643.19
2023 881.00 Analyst x2 616.66
2024 914.93 Est @ 3.85% 585.77
2025 947.08 Est @ 3.51% 554.62
2026 978.14 Est @ 3.28% 523.94
2027 1,008.61 Est @ 3.11% 494.16
2028 1,038.85 Est @ 3% 465.55
2029 1,069.17 Est @ 2.92% 438.26
Present value of next 10 years cash flows $5,631.00
NasdaqGS:LKQ DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $1,069.17 × (1 + 2.73%) ÷ (9.33% – 2.73%)
$16,646.69
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $16,646.69 ÷ (1 + 9.33%)10
$6,823.56
NasdaqGS:LKQ Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $5,631.00 + $6,823.56
$12,454.56
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $12,454.56 / 306.46
$40.64
NasdaqGS:LKQ Discount to Share Price
Calculation Result
Value per share (USD) From above. $40.64
Current discount Discount to share price of $35.25
= -1 x ($35.25 - $40.64) / $40.64
13.3%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price LKQ is available for.
Intrinsic value
13%
Share price is $35.25 vs Future cash flow value of $40.64
Current Discount Checks
For LKQ to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • LKQ's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • LKQ's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for LKQ's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are LKQ's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:LKQ PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-09-30) in USD $1.41
NasdaqGS:LKQ Share Price ** NasdaqGS (2019-11-11) in USD $35.25
United States of America Retail Distributors Industry PE Ratio Median Figure of 11 Publicly-Listed Retail Distributors Companies 17.51x
United States of America Market PE Ratio Median Figure of 2,909 Publicly-Listed Companies 18.22x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of LKQ.

NasdaqGS:LKQ PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:LKQ Share Price ÷ EPS (both in USD)

= 35.25 ÷ 1.41

25.03x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • LKQ is overvalued based on earnings compared to the US Retail Distributors industry average.
  • LKQ is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does LKQ's expected growth come at a high price?
Raw Data
NasdaqGS:LKQ PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 25.03x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 15 Analysts
14.8%per year
United States of America Retail Distributors Industry PEG Ratio Median Figure of 5 Publicly-Listed Retail Distributors Companies 1.88x
United States of America Market PEG Ratio Median Figure of 2,014 Publicly-Listed Companies 1.47x

*Line of best fit is calculated by linear regression .

NasdaqGS:LKQ PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 25.03x ÷ 14.8%

1.69x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • LKQ is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on LKQ's assets?
Raw Data
NasdaqGS:LKQ PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-09-30) in USD $15.72
NasdaqGS:LKQ Share Price * NasdaqGS (2019-11-11) in USD $35.25
United States of America Retail Distributors Industry PB Ratio Median Figure of 14 Publicly-Listed Retail Distributors Companies 2.22x
United States of America Market PB Ratio Median Figure of 5,043 Publicly-Listed Companies 1.74x
NasdaqGS:LKQ PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:LKQ Share Price ÷ Book Value per Share (both in USD)

= 35.25 ÷ 15.72

2.24x

* Primary Listing of LKQ.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • LKQ is overvalued based on assets compared to the US Retail Distributors industry average.
X
Value checks
We assess LKQ's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Retail Distributors industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Retail Distributors industry average (and greater than 0)? (1 check)
  5. LKQ has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is LKQ expected to perform in the next 1 to 3 years based on estimates from 15 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
14.8%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is LKQ expected to grow at an attractive rate?
  • LKQ's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • LKQ's earnings growth is expected to exceed the United States of America market average.
  • LKQ's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:LKQ Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:LKQ Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 15 Analysts 14.8%
NasdaqGS:LKQ Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 15 Analysts 2.2%
United States of America Retail Distributors Industry Earnings Growth Rate Market Cap Weighted Average 11.1%
United States of America Retail Distributors Industry Revenue Growth Rate Market Cap Weighted Average 3.6%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14.2%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.2%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGS:LKQ Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 15 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:LKQ Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 13,745 1,165 903 2
2022-12-31 13,359 1,131 856 2
2021-12-31 12,984 1,052 791 6
2020-12-31 12,826 1,001 712 15
2019-12-31 12,517 966 535 14
2019-11-11
NasdaqGS:LKQ Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-09-30 12,499 1,155 441
2019-06-30 12,474 1,020 423
2019-03-31 12,256 743 430
2018-12-31 11,877 711 485
2018-09-30 11,344 591 570
2018-06-30 10,687 485 559
2018-03-31 10,115 492 553
2017-12-31 9,737 519 540
2017-09-30 9,417 560 510
2017-06-30 9,159 635 498
2017-03-31 9,005 672 485
2016-12-31 8,584 635 456

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • LKQ's earnings are expected to grow by 14.8% yearly, however this is not considered high growth (20% yearly).
  • LKQ's revenue is expected to grow by 2.2% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:LKQ Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 15 Analyst Estimates (S&P Global) See Below

All data from LKQ Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:LKQ Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31 2.91 2.91 2.91 1.00
2022-12-31 2.77 2.77 2.77 1.00
2021-12-31 2.57 2.57 2.57 1.00
2020-12-31 2.31 2.54 2.11 8.00
2019-12-31 1.74 1.80 1.71 7.00
2019-11-11
NasdaqGS:LKQ Past Financials Data
Date (Data in USD Millions) EPS *
2019-09-30 1.41
2019-06-30 1.34
2019-03-31 1.36
2018-12-31 1.54
2018-09-30 1.83
2018-06-30 1.80
2018-03-31 1.79
2017-12-31 1.75
2017-09-30 1.66
2017-06-30 1.62
2017-03-31 1.58
2016-12-31 1.49

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • LKQ is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess LKQ's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
LKQ has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has LKQ performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare LKQ's growth in the last year to its industry (Retail Distributors).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • LKQ's year on year earnings growth rate has been positive over the past 5 years.
  • LKQ's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • LKQ's 1-year earnings growth is negative, it can't be compared to the US Retail Distributors industry average.
Earnings and Revenue History
LKQ's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from LKQ Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:LKQ Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-09-30 12,499.03 440.71 3,569.29
2019-06-30 12,473.64 422.95 3,556.17
2019-03-31 12,256.21 429.60 3,483.42
2018-12-31 11,876.67 484.52 3,353.28
2018-09-30 11,343.75 570.46 3,182.32
2018-06-30 10,687.17 558.73 2,998.96
2018-03-31 10,114.83 552.64 2,837.11
2017-12-31 9,736.91 540.49 2,713.09
2017-09-30 9,417.46 510.40 2,610.09
2017-06-30 9,159.00 497.87 2,526.14
2017-03-31 9,005.40 484.76 2,473.66
2016-12-31 8,584.03 456.12 2,359.11
2016-09-30 8,182.54 454.89 2,259.07
2016-06-30 7,806.93 446.39 2,157.50
2016-03-31 7,340.20 428.30 2,037.93
2015-12-31 7,192.63 423.22 1,987.27
2015-09-30 7,127.85 408.63 1,963.14
2015-06-30 7,017.14 398.80 1,926.69
2015-03-31 6,888.20 383.96 1,896.11
2014-12-31 6,740.06 381.52 1,866.52
2014-09-30 6,372.62 378.91 1,769.74
2014-06-30 5,949.69 360.84 1,667.09
2014-03-31 5,492.31 331.68 1,560.94
2013-12-31 5,062.53 311.62 1,454.08
2013-09-30 4,813.75 295.95 1,391.58
2013-06-30 4,532.37 276.55 1,321.53
2013-03-31 4,287.15 264.83 1,261.87
2012-12-31 4,122.93 261.23 1,219.34

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • LKQ has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • LKQ used its assets less efficiently than the US Retail Distributors industry average last year based on Return on Assets.
  • LKQ's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess LKQ's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Retail Distributors industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
LKQ has a total score of 1/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is LKQ's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up LKQ's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • LKQ is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • LKQ's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of LKQ's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 1.2x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from LKQ Company Filings, last reported 1 month ago.

NasdaqGS:LKQ Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-09-30 4,872.70 3,840.74 433.39
2019-06-30 4,909.75 4,043.79 375.97
2019-03-31 4,856.77 4,258.64 316.07
2018-12-31 4,838.75 4,351.50 331.76
2018-09-30 4,897.42 4,417.71 341.35
2018-06-30 4,776.98 4,490.76 345.20
2018-03-31 4,418.98 3,390.88 245.68
2017-12-31 4,206.65 3,465.47 279.77
2017-09-30 4,041.04 3,200.67 275.08
2017-06-30 3,856.69 3,021.62 303.54
2017-03-31 3,606.87 3,030.65 264.61
2016-12-31 3,442.95 3,344.90 227.40
2016-09-30 3,427.28 3,266.80 271.85
2016-06-30 3,307.64 3,341.89 273.20
2016-03-31 3,234.41 2,821.04 229.22
2015-12-31 3,114.68 1,586.05 87.40
2015-09-30 3,036.71 1,609.60 137.09
2015-06-30 2,954.09 1,694.82 143.42
2015-03-31 2,779.91 1,739.36 175.49
2014-12-31 2,720.66 1,851.37 114.61
2014-09-30 2,667.69 1,903.60 244.65
2014-06-30 2,602.52 1,958.26 109.56
2014-03-31 2,471.03 1,738.49 113.25
2013-12-31 2,350.75 1,314.25 150.49
2013-09-30 2,254.11 1,321.62 107.34
2013-06-30 2,137.65 1,386.27 161.59
2013-03-31 2,041.23 1,081.80 63.00
2012-12-31 1,964.09 1,134.12 59.77
  • LKQ's level of debt (78.8%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (71.3% vs 78.8% today).
  • Debt is well covered by operating cash flow (30.1%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 6.7x coverage).
X
Financial health checks
We assess LKQ's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. LKQ has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is LKQ's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from LKQ dividends.
If you bought $2,000 of LKQ shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate LKQ's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate LKQ's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGS:LKQ Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 15 Analyst Estimates (S&P Global) See Below
United States of America Retail Distributors Industry Average Dividend Yield Market Cap Weighted Average of 6 Stocks 2.2%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 1942 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:LKQ Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31
2020-12-31
2019-12-31
2019-11-11

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as LKQ has not reported any payouts.
  • Unable to verify if LKQ's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of LKQ's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as LKQ has not reported any payouts.
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess LKQ's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can LKQ afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. LKQ has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of LKQ's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Nick Zarcone
COMPENSATION $3,978,116
AGE 61
TENURE AS CEO 2.5 years
CEO Bio

Mr. Dominick Paul Zarcone, also known as Nick, has been the Chief Executive Officer and President of LKQ Corporation since May 2017 and has been its Director since May 8, 2017. Mr. Zarcone served as Chief Financial Officer and Executive Vice President of LKQ Corp. since March 30, 2015 until May 2017. Prior to joining LKQ, Mr. Zarcone served as the Managing Director and the Chief Financial Officer of Baird Financial Group, a capital markets and wealth management company and certain of its affiliates from April 2011 to March 2015. Mr. Zarcone served as Treasurer of Baird Funds, Inc. - Baird Largecap Fund from April 2011 to March 2015. From February 1995 to April 2011, Mr. Zarcone served as a Managing Director of the Investment Banking department of Robert W. Baird & Co. Incorporated. From February 1986 to February 1995, he was with the investment banking company Kidder, Peabody & Co., Incorporated, as Senior Vice President of Investment Banking. He has over 25 years of expertise in investment banking and capital markets. He served as the Chief Financial Officer of Robert W. Baird & Co. Incorporated from 2011 to March 10, 2015 and its Managing Director until March 10, 2015. He spent 16 years in Robert W. Baird & Co.'s Investment Banking Department, where he served as the Chief Operating Officer. He was responsible for managing the Investment Banking activities in the Services and Technology sectors and his client activities were primarily focused on providing M&A advisory and financing services to growth-oriented companies in the Business Services industry. His extensive transaction experience includes approximately 100 financing and advisory assignments, including public offerings, private placements, mergers and acquisitions and strategic advisories. Prior to joining Baird in 1995, he spent nine years in the Investment Banking Group at Kidder, Peabody & Co., working with growth companies in service industries. Prior to joining Kidder, Peabody & Co., he spent five years with Beatrice Companies, Inc. in various financial capacities, the last of which was Manager-Treasurer for the International Food Segment. He has been Independent Director of Generac Holdings Inc. since January 1, 2017. Mr. Zarcone is a member of the Board of Directors of Generac Power Systems, Inc. He has been a Director of Coast Distribution System Inc. since August 19, 2015. Mr. Zarcone received an MBA from the University of Chicago Graduate School of Business and a BS in Finance with highest honors from the University of Illinois.

CEO Compensation
  • Nick's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Nick's remuneration is lower than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the LKQ management team in years:

3.5
Average Tenure
55
Average Age
  • The tenure for the LKQ management team is about average.
Management Team

Joe Holsten

TITLE
Executive Chairman
COMPENSATION
$2M
AGE
67

Nick Zarcone

TITLE
President
COMPENSATION
$4M
AGE
61
TENURE
2.5 yrs

Varun Laroyia

TITLE
Executive VP & CFO
COMPENSATION
$2M
AGE
47
TENURE
2.1 yrs

Victor Casini

TITLE
Senior VP
COMPENSATION
$2M
AGE
56
TENURE
21.8 yrs

Walter Hanley

TITLE
Senior Vice President of Development
COMPENSATION
$2M
AGE
52
TENURE
16.9 yrs

Arnd Franz

TITLE
Executive VP and CEO of LKQ Europe & COO
AGE
54
TENURE
0.6 yrs

Ash Brooks

TITLE
Senior VP & Chief Information Officer
AGE
55
TENURE
3.5 yrs

Joe Boutross

TITLE
Vice President of Investor Relations
TENURE
8.7 yrs

Guido Weber

TITLE
Director of Corporate Communications & Government Affairs

Terry Fortner

TITLE
Vice President of Insurance
Board of Directors Tenure

Average tenure and age of the LKQ board of directors in years:

7.3
Average Tenure
62
Average Age
  • The tenure for the LKQ board of directors is about average.
Board of Directors

Nick Zarcone

TITLE
President
COMPENSATION
$4M
AGE
61
TENURE
2.5 yrs

John O'Brien

TITLE
Independent Director
COMPENSATION
$246K
AGE
75
TENURE
16.3 yrs

Joe Holsten

TITLE
Executive Chairman
COMPENSATION
$2M
AGE
67
TENURE
8 yrs

Blythe McGarvie

TITLE
Independent Director
COMPENSATION
$256K
AGE
63
TENURE
7.7 yrs

Guhan Subramanian

TITLE
Independent Director
COMPENSATION
$246K
AGE
48
TENURE
6.8 yrs

A. Allen

TITLE
Lead Independent Director
COMPENSATION
$265K
AGE
75
TENURE
8.7 yrs

Billy Webster

TITLE
Independent Director
COMPENSATION
$241K
AGE
61
TENURE
16.4 yrs

Robert Hanser

TITLE
Independent Director
COMPENSATION
$320K
AGE
65
TENURE
4 yrs

Meg Divitto

TITLE
Independent Director
COMPENSATION
$130K
AGE
47
TENURE
1.3 yrs

Jody Miller

TITLE
Independent Director
COMPENSATION
$133K
AGE
61
TENURE
1.3 yrs
Who owns this company?
Recent Insider Trading
  • LKQ individual insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
06. Nov 19 Sell Blythe McGarvie Individual 05. Nov 19 05. Nov 19 -13,692 $35.62 $-487,652
X
Management checks
We assess LKQ's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. LKQ has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Is LKQ Corporation (NASDAQ:LKQ) Potentially Undervalued?

According to my valuation, the intrinsic value for the stock is $35, but it is currently trading at US$25.46 on the share market, meaning that there is still an opportunity to buy now. … However, given that LKQ’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us another chance to buy in the future. … Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price.

Simply Wall St -

LKQ Corporation (NASDAQ:LKQ): Is Growth Priced In?

LKQ is available at price-to-earnings ratio of 18.99x, showing us it is undervalued based on its latest annual earnings update compared to the Retail Distributors average of 23.63x , and overvalued compared to the US market average ratio of 17.42x. … A PE ratio of 18.99x and expected year-on-year earnings growth of 15% give LKQ a higher PEG ratio of 1.25x. … Based on this growth, LKQ's stock can be considered slightly overvalued , based on its fundamentals.

Simply Wall St -

With A 8.7% Return On Equity, Is LKQ Corporation (NASDAQ:LKQ) A Quality Stock?

One way to conceptualize this, is that for each $1 of shareholders' equity it has, the company made $0.087 in profit. … The formula for ROE is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for LKQ: 8.7% = US$423m ÷ US$4.9b (Based on the trailing twelve months to June 2019.) Most know that net profit is the total earnings after all expenses, but the concept of shareholders' equity is a little more complicated. … A company that can achieve a high return on equity without debt could be considered a high quality business.

Simply Wall St -

We Think LKQ (NASDAQ:LKQ) In Taking Some Risk With Its Debt

Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility of prices, but whether you will suffer a permanent loss of capital.' It's only natural to consider a company's balance sheet when you examine how risky it is, since debt is often involved when a business collapses. … Since LKQ does have net debt, we think it is worthwhile for shareholders to keep an eye on the balance sheet, over time. … The first is net debt divided by earnings before interest, tax, depreciation, and amortization (EBITDA), while the second is how many times its earnings before interest and tax (EBIT) covers its interest expense (or its interest cover, for short).

Simply Wall St -

Don't Sell LKQ Corporation (NASDAQ:LKQ) Before You Read This

The formula for price to earnings is: Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS) Or for LKQ: P/E of 19.56 = $26.61 ÷ $1.36 (Based on the trailing twelve months to March 2019.) Is A High Price-to-Earnings Ratio Good? … LKQ shrunk earnings per share by 24% over the last year. … And it has shrunk its earnings per share by 1.0% per year over the last three years.

Simply Wall St -

Should You Be Worried About LKQ Corporation's (NASDAQ:LKQ) 10% Return On Equity?

With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. … That means that for every $1 worth of shareholders' equity, it generated $0.10 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

What Does LKQ Corporation's (NASDAQ:LKQ) Share Price Indicate?

received a lot of attention from a substantial price increase on the NASDAQGS over the last few months. … With many analysts covering the mid-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price? … Today I will analyse the most recent data on LKQ’s outlook and valuation to see if the opportunity still exists

Simply Wall St -

LKQ Corporation (NASDAQ:LKQ): The Yield That Matters The Most

If you are currently a shareholder in LKQ Corporation (NASDAQ:LKQ), or considering investing in the stock, you need to examine how the business generates cash, and how it is reinvested. … I’ve analysed below, the health and outlook of LKQ’s cash flow, which will help you understand the stock from a cash standpoint. … LKQ generates cash through its day-to-day business, which needs to be reinvested into the company in order for it to continue operating.

Simply Wall St -

Investors Who Bought LKQ (NASDAQ:LKQ) Shares A Year Ago Are Now Down 31%

That downside risk was realized by LKQ Corporation (NASDAQ:LKQ) shareholders over the last year, as the share price declined 31%. … One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS). … The company's earnings per share (over time) is depicted in the image below (click to see the exact numbers)

Simply Wall St -

Is LKQ Corporation (NASDAQ:LKQ) Investing Your Capital Efficiently?

In particular, we'll consider its Return On Capital Employed (ROCE), as that can give us insight into how profitably the company is able to employ capital in its business. … Understanding Return On Capital Employed (ROCE). … Analysts use this formula to calculate return on capital employed:

Simply Wall St -

Company Info

Description

LKQ Corporation, together with its subsidiaries, distributes replacement parts, components, and systems used in the repair and maintenance of vehicles. It operates in three segments: North America, Europe, and Specialty. The company distributes bumper covers, automotive body panels, and lights, as well as automotive glass products, such as windshields; salvage products, including mechanical and collision parts comprising engines; transmissions; door assemblies; sheet metal products, such as trunk lids, fenders, and hoods; lights and bumper assemblies; scrap metal and other materials to metals recyclers; and brake pads, discs and sensors, clutches, steering and suspension products, filters, and oil and automotive fluids, as well as electrical products, including spark plugs and batteries. It also offers recycled aviation parts, including aircraft structural components and spare parts, and engines and engine components to regional maintenance, repair and overhaul providers, aircraft and fixed-base operators, corporate customers, and other aviation dealers and distributors. In addition, the company operates self-service retail operations under the LKQ Pick Your Part name; and designs, manufactures, and markets vehicle equipment and accessories. Further, it distributes recreational vehicle appliances and air conditioners, towing hitches, truck bed covers, vehicle protection products, cargo management products, wheels, tires, and suspension products. The company serves collision and mechanical repair shops, and new and used car dealerships, as well as retail customers. It operates in the United States, Canada, the United Kingdom, Germany, Belgium, the Netherlands, Luxembourg, Italy, the Czech Republic, Poland, Slovakia, Austria, Taiwan, and various other European countries. LKQ Corporation was founded in 1998 and is headquartered in Chicago, Illinois.

Details
Name: LKQ Corporation
LKQ
Exchange: NasdaqGS
Founded: 1998
$10,802,771,012
306,461,589
Website: http://www.lkqcorp.com
Address: LKQ Corporation
500 West Madison Street,
Suite 2800,
Chicago,
Illinois, 60661,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS LKQ Common Stock Nasdaq Global Select US USD 03. Oct 2003
DB LKQ1 Common Stock Deutsche Boerse AG DE EUR 03. Oct 2003
LSE 0JSJ Common Stock London Stock Exchange GB USD 03. Oct 2003
Number of employees
Current staff
Staff numbers
51,000
LKQ employees.
Industry
Distributors
Retail
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/11/11 23:47
End of day share price update: 2019/11/11 00:00
Last estimates confirmation: 2019/11/04
Last earnings filing: 2019/11/05
Last earnings reported: 2019/09/30
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.